The Egyptian non-oil PMI issued by IHS Markit rose to 44.6 points in June from 40.7 in May, after having hit a low record in April at 29.7 points.
In line with the key figure, the new production and order sub-indices also rose to their highest levels in four months during June. Despite the continued indication of a noticeable decline in activity and demand at the level of the non-oil producing private sector in Egypt, the rate of deflation decreased significantly from the previous month.
Many companies benefited from the partial lifting of Covid-19 pandemic restrictions, as working hours increased with new contracts from clients. However, activity in most of the sector remained weak, due to travel and tourism restrictions.
In parallel, the accumulated volume of Egyptian companies increased for the second month in a row and at a record pace, indicating that companies are increasingly restricting business capacity. Also, optimism for future activity was the highest in 2020 so far, as companies announced that the government was looking to ease Covid-19's restrictions further.
Source (CNBC Arabic Website, Edited)
